Question

Brian purchases an RV for $32,000. The value of the RV is decreasing exponentially at a rate of 5% per year. Write a function that could be used to model the value of the RV where x represents the number of years since the RV was purchased . What will the RV be worth in 20 years? Please show work

Answer 1

the value of the project is $16,096.88

The computation of the value of the project is shown below:

= (Expected amount generated per year × (1 - (1 ++ rate of returm)^-time period )) ÷ rate of return

= $36,950 × [1 - 1.1^-6] ÷ 0.1

= $16,0926.88

Hence, the value of the project is $16,096.88

We simply applied the above formula so that the correct value could come

And, the same is to be considered